General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated 10 days ago, 11/09/2024
RAD Diversified SCAM ALERT!!!
Hello,
I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.
I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.
I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.
"On April 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company’s redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after April 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the redemption program or to continue to pause the redemption program no later than July 1, 2024."
#2 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
- 8,490
- Votes |
- 5,521
- Posts
#2 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
When a deal pans out as projected, everyone (almost everyone) is happy. When a deal does not, then the accusations fly. So, let’s RATIONALLY take a look at the three possible scenarios.
1. The deal was legit, the sponsor was honest, all laws were complied with, the deal didn’t work as planned.
2. The deal was legit, the sponsor was NOT honest, all laws were complied with, the deal didn’t work.
3. Scam from day 1.
Now some investments can fall between there numbers, or have aspects of 2 or more. However, my impression is (1) many deals should NOT be sold to unsophisticated/un accredited/ not high net worth investors EVEN IF the law allows this, and (2) when a deal doesn’t pan out as projected the unsophisticated investors believe they’ve been “scammed”.
Here are the biggest mistaken assumption unsophisticated investors make when contemplating an investment in a deal
1- that the Sponsor is an expert in the field of investment
2- that investments, economic markets, financial markets are predictable with any accuracy
3- that PROJECTED returns are PROMISED / GUARANTEED returns
4- that because they NEED their investment to be liquid the sponsor will provide said liquidity
5- that the “deal” is more important than the sponsor.
- Don Konipol
Feel like I've been thrown under the bus by them. No communication. Hard to know what's true, what's not. I wish they'd just be completely honest. Very troubling situation.
@Jonathan Karas Did you notice Rad's social media presence appears to have gone away? Not a good sign..Have they given up or are they still raising money? Seems Dutch is still out there doing Guru stuff but not for the benefit of Rad.
Quote from @Sebastian Bennett:
@Jonathan Karas Did you notice Rad's social media presence appears to have gone away? Not a good sign..Have they given up or are they still raising money? Seems Dutch is still out there doing Guru stuff but not for the benefit of Rad.
the OZ or Land REIT they filed with the SEC was revoked. If I were a betting man the company is folding up and this dutch character is out there doing the guru circuit as only source of $ and idiots will pay for training from someone like this.
- Chris Seveney
Quote from @Chris Seveney:
Quote from @Sebastian Bennett:
@Jonathan Karas Did you notice Rad's social media presence appears to have gone away? Not a good sign..Have they given up or are they still raising money? Seems Dutch is still out there doing Guru stuff but not for the benefit of Rad.
the OZ or Land REIT they filed with the SEC was revoked. If I were a betting man the company is folding up and this dutch character is out there doing the guru circuit as only source of $ and idiots will pay for training from someone like this.
Hi Chris,
Thanks for that info. Do you have a link to that info? I wold be interested in reviewing.
Saw this coming for a few years. I feel bad for the investors who are likely going to lose out on their hard earned income and invested in this company but it can also be used as a case study for other members of the BP community moving forward before investing. I also wonder how accurate or up to date the website remains. I would be surprised if they still have close to 50 staff members. I don't know how they can operate in this climate, especially with all of their challenges with this amount of overhead.
Quote from @Ethan Blue:
Quote from @Chris Seveney:
Quote from @Sebastian Bennett:
@Jonathan Karas Did you notice Rad's social media presence appears to have gone away? Not a good sign..Have they given up or are they still raising money? Seems Dutch is still out there doing Guru stuff but not for the benefit of Rad.
the OZ or Land REIT they filed with the SEC was revoked. If I were a betting man the company is folding up and this dutch character is out there doing the guru circuit as only source of $ and idiots will pay for training from someone like this.
Hi Chris,
Thanks for that info. Do you have a link to that info? I wold be interested in reviewing.
It is all on the SEC edgard website. every reg a offering is public record. I think this is something many investors miss - which is many offerings now all have the data publicly available. For this company, it was easy to see several years ago this was not going to end well based on their SEC reporting.
- Chris Seveney
Quote from @Chris Seveney:
Quote from @Ethan Blue:
Quote from @Chris Seveney:
Quote from @Sebastian Bennett:
@Jonathan Karas Did you notice Rad's social media presence appears to have gone away? Not a good sign..Have they given up or are they still raising money? Seems Dutch is still out there doing Guru stuff but not for the benefit of Rad.
the OZ or Land REIT they filed with the SEC was revoked. If I were a betting man the company is folding up and this dutch character is out there doing the guru circuit as only source of $ and idiots will pay for training from someone like this.
Hi Chris,
Thanks for that info. Do you have a link to that info? I wold be interested in reviewing.
It is all on the SEC edgard website. every reg a offering is public record. I think this is something many investors miss - which is many offerings now all have the data publicly available. For this company, it was easy to see several years ago this was not going to end well based on their SEC reporting.
Thank you, yes I was completely unaware of that as a resource
Quote from @Stuart Udis:
Saw this coming for a few years. I feel bad for the investors who are likely going to lose out on their hard earned income and invested in this company but it can also be used as a case study for other members of the BP community moving forward before investing. I also wonder how accurate or up to date the website remains. I would be surprised if they still have close to 50 staff members. I don't know how they can operate in this climate, especially with all of their challenges with this amount of overhead.
I will do my best to keep everyone updated on what my experience is like. Right now, we are just in hurry up and wait mode. If it does indeed go under, myself, and many others will be out a huge amount.
#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
- 61,667
- Votes |
- 41,869
- Posts
#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Quote from @Don Konipol:
When a deal pans out as projected, everyone (almost everyone) is happy. When a deal does not, then the accusations fly. So, let’s RATIONALLY take a look at the three possible scenarios.
1. The deal was legit, the sponsor was honest, all laws were complied with, the deal didn’t work as planned.
2. The deal was legit, the sponsor was NOT honest, all laws were complied with, the deal didn’t work.
3. Scam from day 1.
Now some investments can fall between there numbers, or have aspects of 2 or more. However, my impression is (1) many deals should NOT be sold to unsophisticated/un accredited/ not high net worth investors EVEN IF the law allows this, and (2) when a deal doesn’t pan out as projected the unsophisticated investors believe they’ve been “scammed”.
Here are the biggest mistaken assumption unsophisticated investors make when contemplating an investment in a deal
1- that the Sponsor is an expert in the field of investment
2- that investments, economic markets, financial markets are predictable with any accuracy
3- that PROJECTED returns are PROMISED / GUARANTEED returns
4- that because they NEED their investment to be liquid the sponsor will provide said liquidity
5- that the “deal” is more important than the sponsor.
Don I think what most investors miss with these funds is the lack of liquidity as in none until the investment cycles or the sponsor wants to pay out.. the idea that folks can have a need for money after the investment and the Sponsor should pay it out upon demand only works if there is a mechanism in the offering to allow that. And them of course the investment has to be working as well.
- Jay Hinrichs
- Podcast Guest on Show #222
Michael Bohn v. Brandon "Dutch" Mendenhall, Et Al.
https://ventura.ecourt.com/public-portal/?q=downloadFile/826...
With several new Citibank mortgage foreclosures in Pinellas and Manatee County, Florida, and the above new case, RAD's situation is looking worse and worse. Chris is right. That's why he's pushing the Inner Circle mentoring and retreats.
Citibank NA As Trustee v. Rad Diversified Reit Inc
Civic Real Estate Holdings III LLC v. Rad Diversified Reit Inc
| Case Number | Case Style | Case Status | Filed | Case Type |
| 24-CA-008270 | U.S. BANK TRUST NATIONAL ASSOCIATION NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS OWNER TRUSTEE OF FF INVESTORCO GRANTOR TRUST VSRAD DIVERSIFIED REIT INC | Open | 2024-10-17 | MortgageForeclosure-Commercial-3-$250,000orMore |
| 24-CA-008275 | ARNEBERG, LORA VSRAD DIVERSIFIED REIT, INC. | Open | 2024-10-17 | BreachofContract |
| 24-CA-008218 | JACAR INVESTMENTS LLC VSRAD DIVERSIFIED REIT | Open | 2024-10-16 | Contract&Indebtedness |
| 24-CA-008063 | CHRISTENSEN, DYANNE VSMENDENHALL, BRANDON | Open | 2024-10-04 | BreachofContract |
| 24-CA-007584 | CIVIC REAL ESTATE HOLDINGS III, LLC VSRAD DIVERSIFIED REIT, INC | Open | 2024-09-17 | MortgageForeclosure-NonHomestead-3-$250,000orMore |
| 24-CA-007587 | CITIBANK, N.A. AS TRUSTEE ON BEHALF OF MAV 1 VSRAD DIVERSIFIED REIT, INC | Open | 2024-09-17 | MortgageForeclosure-NonHomestead-3-$250,000orMore |
| 24-CA-007258 | WILMINGTON SAVINGS FUND SOCIETY, FSB, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE FOR IRIS HOLDINGS A TRUST VSRAD DIVERSIFIED REIT INC., A MARYLAND CORPORATION | Open | 2024-09-05 | MortgageForeclosure-Commercial-2-$50,001-$249,999 |
| 24-CA-006786 | PATRICK G THEODORA AND KEVIN J THEODORA SR AS TRUSTEES OF THE HELEN M. THEODORA IRREVOCABLE TRUST DATED MARCH 25, 2011 VSMENDENHALL, BRANDON | Open | 2024-08-20 | MortgageForeclosure-NonHomestead-2-$50,000-$249,999 |
Here you go folks, in case you were wondering if there was going to be a second act. Share prices are soaring as well :) Sound familiar?
@Stuart Udis
Their reg an offering for that was never qualified and sec just issued a staff action order abandoning it.
https://www.sec.gov/Archives/edgar/data/1975076/999999999724004094/filename1.pdf
- Chris Seveney
Dutch is still raising. How is this even legal?
Another update, at this point, I cannot reach my coordinator. I am guessing that they laid a bunch of people off, but that is only speculation. Several of their properties are in foreclosure.
Allegedly, there is a member meeting Tuesday. We will see what happens. Not looking good.
He can't appropriately care for investors hard earned money but he's is out there teaching others how to raise capital....seems logical.
Quote from @Stuart Udis:
Stuart - give the guy credit he raised like $40M. The problem appears to be managing it and returning it back.
- Chris Seveney